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8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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A
Project Study Report
On
Training Undertaken at
Titled
Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan
S!"mitted in partial f!lfillment for t#e A$ard of degree
Of
Master of Business Administration
2008-2010
Institute of Management !ec"no#ogy
Su$mitted $y% Su$mitted !o%
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Ranjeet Singh Mrs Manishi Sharma
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A&'(O)*+, +M+(!
The path to success is never so smooth and simple to achieve. However, our
learnings and motivation by our close ones and our mentors helps us to reach
beyond our potential. My Project would remain partial without acknowledging
people who encouraged me to achieve a milestone.
I e press my sincere gratitude to Mr. SHELENDAR SINGH !or giving me anopportunity to discover more knowledge through practical learning by organi"ing
immensely knowledgeable Project !or the students o! M#$ % nd year.
I privileged to pay my sincere gratitude towards Mr. DEEPAK VIJAYVARGYIA !or
providing their valuable guidance and encouragement throughout the Project !or
keeping my morale up and making it possible to complete and submit this report in
time. I am e&ually grate!ul to all my other teachers !or their complete support.It would be un!air on my part i! I do not thank my colleges !or their continuous help
without which this work could never have been accomplished. They made me
reali"e the importance o! teamwork and also the leadership skills. I am grate!ul to
all o! them standing with me and supporting me in this project.
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PREFACE
This project report has been prepared as per the re&uirement o! the syllabus o!
M#$ course structure under which the students are the re&uired to undertake
project.
It was a !irst hand e perience !or us as that we were e posed to the pro!essionalset'up and were !acing the market, which was really a great e perience.
(uring project period, I had very touching e periences. )hen business is involved,
e periences counts a lot, as we know, e perience are an instrument, which leads
towards success.
*ow I take this opportunity to present the project report and sincerely hope that it
will be as much knowledge enhancing to the readers as it was to use during the
!ieldwork and the compilation o! the report.
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EXECUTIVE SUMMARY
Their should be comparison between two biggest bank o! India namely
+tate #ank o! India +#I- and Housing (evelopment inancial /orporation
H( /- on Personal loan provided by them.
Today Personal loan is necessity !or !ul!ill the re&uirement o! !amily and
provide good li!e. 0veryone wants a li!e in which all !acilities are present
which are so costly so they move towards to various banks both public as
well as private bank !or loan.
+#I banks is basically pre!er by most o! the people who are in government
jobs1public sectors because o! 2'
3. Ta rebate
%. 4ack o! much !unds
5. Interest rate
H( / #ank also choice o! people because o!2'
3. 0asiness and 4ow documentation
%. +ervices
5. /ooperative and 6elationship
In this project study peoples are satis!ied by both the banks but also wants
more things like 7pdating o! services, technological enhancement and
ethics. I! all the banks !ocus on these things they get better growth in
Personal loan as well as better response o! people as today Personal loanis re&uired !or !ul!ill the re&uirement o! li!e.
TABLE OF CONTENT
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Contents !
3. Introduction to the Industry
%. History o! #anking in India
5. Introduction to the organi"ation
8. 6esearch Methodology
Title o! the +tudy
(uration o! the Project
9bjective o! the study
Type o! the 6esearch
+ample +i"e and Method o! selecting +amples
+cope o! the +tudy 4imitation o! the +tudy
:. acts and indings
;. $nalysis and Interpretation
. $ppendi
3?. #ibliography
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INTRODUCTION OF BANKING INDUSTRY
B"n#
$ $"n# is license by a government . Its primary activity is to lend money.
Many other !inancial activities were allowed over time. or e ample banks
are important players in !inancial markets and o!!er !inancial services such
as investment !unds In some countries such as @ermany , banks have
historically owned major stakes in industrial corporations while in other
countries such as the 7nited +tates banks are prohibited !rom owning non'
!inancial companies. In Aapan , banks are usually the ne us o! a cross'share
holding entity known as the "aibatsu . In rance , banc assurance isprevalent, as most banks o!!er insurance services and now real estate
services- to their clients.
The level o! government regulation o! the banking industry varies widely,
with counties such as Iceland , the 7nited Bingdom and the 7nited +tates
having relatively light regulation o! the banking sector, and countries such
as /hina having relatively heavier regulation including stricter regulations
regarding the level o! reserves -.
History
#anks have in!luenced economies and politics !or centuries. Historically, the
primary purpose o! a bank was to provide loans to trading companies.
#anks provided !unds to allow businesses to purchase inventory, and
collected those !unds back with interest when the goods were sold. orcenturies, the banking industry only dealt with businesses, not consumers.
#anking services have e panded to include services directed at individuals,
and risk in these much smaller transactions are pooled..
http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Zaibatsuhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Reserve_requirementshttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Zaibatsuhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Reserve_requirements8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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Or%&%n o' t(e )or*
Silver drachm coin from Trapezus, 4th century BC
The name bank derives !rom the Italian word banco Cdesk1benchC, used
during the 6enaissance by lorentine bankers, who used to make their
transactions above a desk covered by a green tablecloth. However, there
are traces o! banking activity even in ancient times.
ABOUT BANKING !
+ection : b- o! the #anking 6egulation $ct, 3>8>
de!ines banking as Dthe accepting, !or the purpose o! lending or
investment, o! deposits o! money !rom the public, repayable on demand or
otherwise, and withdrawal by che&ue, dra!t, order or otherwise.E
+ection : c- o! the #anking 6egulation $ct, 3>8> de!ines a banking company as
Fany company which transacts the business o! banking in IndiaE.
http://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/File:Trapezus.pnghttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florence8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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De'%n%t%on o' B"n#%n& !
The de!inition o! a bank varies !rom country to country.
7nder En&+%s( ,o--on +") , a banker is de!ined as a person who carries
on the business o! banking, which is speci!ied as2
/onducting current accounts !or his customers Paying che&ues drawn on him, and /ollecting che&ues !or his customers.
The borrowing, raising or taking up o! money, the lending or advancing o! moneyeither with or without securityG
$cting as agents !or any government or local authority or any other person or
persons.
/ontracting !or public and private loans and negotiating and issuing the same.
The e!!ecting, insuring, guaranteeing, underwriting, participating in managing and
carrying out o! any issue, public or private, o! state, municipal or other loans or o!
shares, stock, debentures or debenture stock o! any company, corporation or
association and the lending o! money !or the purpose o! any such issue.
http://en.wikipedia.org/wiki/English_common_lawhttp://en.wikipedia.org/wiki/English_common_law8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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E "-/+es o' st"t0tor1 *e'%n%t%ons 2
Cbanking businessC means the business o! receiving money on current or
deposit account, paying and collecting che&ues drawn by or paid in by
customers, the making o! advances to customers, and includes such other
business as the $uthority may prescribe !or the purposes o! this $ctG
#anking $ct +ingapore-, +ection %, Interpretation-.
Cbanking businessC means the business o! either or both o! the !ollowing2
1. 6eceiving !rom the general public money on current, deposit, savings or
other similar account repayable on demand or within less than 5 months ...
or with a period o! call or notice o! less than that periodG
2. Paying or collecting che&ues drawn by or paid in by customers
3. +ince the advent o! 0 TP9+ 0lectronic unds Trans!er at Point 9!
+ale-, direct credit, direct debit and internet banking, the che&ue has lost its
primacy in most banking systems as a payment instrument. This has led
legal theorists to suggest that the che&ue based de!inition should be
broadened to include !inancial institutions that conduct current accounts !or
customers and enable customers to pay and be paid by third parties, even i!
they do not pay and collect che&ues
http://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/EFTPOS8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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Commercial role:-
The commercial role o! banks is not limited to banking, and includes2
issue o! banknotes promissory notes issued by a banker and payable to
bearer on demand- processing o! payments by way o! telegraphic trans!er, 0 TP9+ ,
internet banking or other means issuing bank dra!ts and bank che&ues accepting money on term deposit lending money by way o! overdra!t , installment loan or otherwise providing documentary and standby letters o! credit trade !inance -,
guarantees, per!ormance bonds , securities underwriting commitments and
other !orms o! o!!'balance sheet e posures sa!ekeeping o! documents and other items in sa!e deposit bo es currency e change acting as a J!inancial supermarketJ !or the sale, distribution or brokerage,
with or without advice, o! insurance, unit trusts and similar !inancial products
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Safe_deposit_boxhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Safe_deposit_box8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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Economic functions:-
The economic !unctions o! banks include2
1. Issue o! money, in the !orm o! banknotes and current accounts subjectto che&ue or payment at the customerJs order. These claims on banks can
act as money because they are negotiable and1or repayable on demand,
and hence valued at par. They are e!!ectively trans!erable by mere delivery,
in the case o! banknotes , or by drawing a che&ue that the payee may bank
or cash.
2. *etting and settlement o! payments K banks act as both collection and
paying agents !or customers, participating in interbank clearing andsettlement systems to collect, present, be presented with, and pay payment
instruments. This enables banks to economise on reserves held !or
settlement o! payments, since inward and outward payments o!!set each
other. It also enables the o!!setting o! payment !lows between geographical
areas, reducing the cost o! settlement between them.
3. /redit intermediation K banks borrow and lend back'to'back on their
own account as middle men
4. /redit &uality improvement K banks lend money to ordinary commercial
and personal borrowers ordinary credit &uality-, but are high &uality
borrowers. The improvement comes !rom diversi!ication o! the bankJs assets
and capital which provides a bu!!er to absorb losses without de!aulting on its
obligations.
5. Maturity trans!ormation K banks borrow more on demand debt and
short term debt, but provide more long term loans. In other words, they
borrow short and lend long. )ith a stronger credit &uality than most other
borrowers, banks can do this by aggregating issues e.g. accepting deposits
and issuing banknotes- and redemptions e.g. withdrawals -.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Asset_liability_mismatch8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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La of !an"in#:-
#anking law is based on a contractual analysis o! the relationship between
the bank de!ined above- and the customer Lde!ined as any entity !or which
the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as !ollows2
3. The bank account balance is the !inancial position between
the bank and the customer2 when the account is in credit, the bank owes the
balance to the customerG when the account is overdrawn, the customer
owes the balance to the bank.
%. The bank agrees to pay the customerJs che&ues up to the
amount standing to the credit o! the customerJs account, plus any agreed
overdra!t limit.
5. The bank may not pay !rom the customerJs account without a
mandate !rom the customer, e.g. a che&ue drawn by the customer.
8. The bank agrees to promptly collect the che&ues deposited
to the customerJs account as the customerJs agent, and to credit the
proceeds to the customerJs account.
:. The bank has a right to combine the customerJs accounts,
since each account is just an aspect o! the same credit relationship.
6. The bank has a lien on che&ues deposited to the customerJs
account, to the e tent that the customer is indebted to the bank.
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Entry re#ulation:-
/urrently in most jurisdictions commercial banks are regulated by
government entities and re&uire a special bank licence to operate.
7sually the de!inition o! the business o! banking !or the purposes o!
regulation is e tended to include acceptance o! deposits, even i! they are
not repayable to the customerJs orderLalthough money lending, by itsel!, is
generally not included in the de!inition.
7nlike most other regulated industries, the regulator is typically also a
participant in the market, i.e. a government'owned central- bank. /entral
banks also typically have a monopoly on the business o! issuing
$"n#notes . However, in some countries this is not the case. In the 7B, !or
e ample, the F%n"n,%"+ Ser2%,es A0t(or%t1 licenses banks, and some
commercial banks such as the B"n# o' S,ot+"n* - issue their own
$"n#notes in addition to those issued by the B"n# o' En&+"n* , the 7B
governmentJs central bank.
+ome types o! !inancial institution, such as $0%+*%n& so,%et%es and ,re*%t 0n%ons , may be partly or wholly e empt !rom bank licence re&uirements,
and there!ore regulated under separate rules.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unions8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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The re&uirements !or the issue o! a bank licence vary between jurisdictions
but typically include2
3. Minimum capital
%. Minimum capital ratio
J it and ProperJ re&uirements !or the bankJs controllers, owners, directors,
and1or senior o!!icersThe re&uirements !or the issue o! a bank licence vary
between jurisdictions but typically include2
5. J it and ProperJ re&uirements !or the bankJs controllers,
owners, directors, and1or senior o!!icers
8. $pproval o! the bankJs
5. #usiness plan as being su!!iciently prudent.
The economic !unctions o! banks include2
6. Issue o! money, in the !orm o! $"n#notes and current accounts
subject to ,(e30e or payment at the customerJs order. These claims on
banks can act as money because they are negotiable and1or repayable ondemand, and hence valued at par. They are e!!ectively trans!erable by mere
delivery, in the case o! $"n#notes , or by drawing a che&ue that the payee
may bank or cash.
7. *etting and settlement o! payments K banks act as both collection
and paying agents !or customers, participating in interbank clearing and
settlement systems to collect, present, be presented with, and pay payment
instruments. This enables banks to economise on reserves held !or
settlement o! payments, since inward and outward payments o!!set each
other. It also enables the o!!setting o! payment !lows between geographical
areas, reducing the cost o! settlement between them.
8. /redit intermediation K banks borrow and lend back'to'back on their
own account as middle men
9. /redit &uality improvement K banks lend money to ordinary
commercial and personal borrowers ordinary credit &uality-, but are high
&uality borrowers. The improvement comes !rom diversi!ication o! the bankJs
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknotes8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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assets and capital which provides a bu!!er to absorb losses without
de!aulting on its obligations. However, banknotes and deposits are
generally unsecuredG i! the bank gets into di!!iculty and pledges assets as
security, to raise the !unding it needs to continue to operate, this puts the
note holders and depositors in an economically subordinated position.
1 . M"t0r%t1 tr"ns'or-"t%on 2'#anks borrow more on demand debt and
short term debt, but provide more long term loans. In other words, they
borrow short and lend long. )ith a stronger credit &uality than most other
borrowers, banks can do this by aggregating issues e.g. accepting deposits
and issuing banknotes- and redemptions e.g. withdrawals and redemptions
o! banknotes-, maintaining reserves o! cash, investing in marketable
securities that can be readily converted to cash i! needed, and raising
replacement !unding as needed !rom various sources e.g. wholesale cash
markets and securities markets-.
#anking law is based on a contractual analysis o! the relationship between
the bank de!ined above- and the C0sto-er ! de!ined as any entity !or
which the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as !ollows2
33.. The bank agrees to promptly collect the che&ues deposited to the
customerJs account as the customerJs agent, and to credit the proceeds to
the customerJs account.
3% . The banks have a right to combine the customerJs accounts, since
each account is just an aspect o! the same credit relationship.
35. The bank has a lien on che&ues deposited to the customerJs account,
to the e tent that the customer is indebted to the bank.
38. The bank must not disclose details o! transactions through the
customerJs accountLunless the customer consents, there is a public duty to
disclose, the bankJs interests re&uire it, or the law demands it.
http://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Lien8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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3: . The banks must not close a customerJs account without reasonable
notice, since che&ues are outstanding in the ordinary course o! business !or
several days.
These implied contractual terms may be modi!ied by e press agreement
between the customer and the bank. The statutes and regulations in !orce
within a particular jurisdiction may also modi!y the above terms and1or
create new rights, obligations or limitations relevant to the bank'customer
relationship.
/urrently in most jurisdictions commercial banks are regulated by
government entities and re&uire a special bank licence to operate.
7sually the de!inition o! the business o! banking !or the purposes o!
regulation is e tended to include acceptance o! deposits, even i! they are
not repayable to the customerJs orderLalthough money lending, by itsel!, is
generally not included in the de!inition.
7nlike most other regulated industries, the regulator is typically also a
participant in the market, i.e. a government'owned central- bank. /entralbanks also typically have a monopoly on the business o! issuing banknotes .
However, in some countries this is not the case. In the 7B, !or e ample, the
inancial +ervices $uthority licences banks, and some commercial banks
such as the #ank o! +cotland - issue their own banknotes in addition to
those issued by the #ank o! 0ngland , the 7B governmentJs central bank.
+ome types o! !inancial institution, such as building societies and credit
unions , may be partly or wholly e empt !rom bank licence re&uirements, and
there!ore regulated under separate rules.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unions8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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H%stor1 o' B"n#%n& %n In*%"
The !irst bank in India, though conservative, was established in 3
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In 3=;: $llahabad #ank was established and !irst time e clusively by Indians,
Punjab *ational #ank 4td. was set up in 3=>8 with head&uarters at 4ahore.
#etween 3>?; and 3>35, #ank o! India, /entral #ank o! India, #ank o! #aroda,
/anara #ank, Indian #ank, and #ank o! Mysore were set up. 6eserve #ank o!
India came in 3>5:.
(uring the !irst phase the growth was very slow and banks also e perienced
periodic !ailures between 3>35 and 3>8=. There were appro imately 33?? banks,
mostly small. To streamline the !unctioning and activities o! commercial banks, the
@overnment o! India came up with The #anking /ompanies $ct, 3>8> which was
later changed to #anking 6egulation $ct 3>8> as per amending $ct o! 3>;: $ct
*o. %5 o! 3>;:-. 6eserve #ank o! India was vested with e tensive powers !or the
supervision o! banking in India as the /entral #anking $uthority.
P("se
@overnment took major steps in this Indian #anking +ector 6e!orm a!ter
independence. In 3>::, it nationali"ed Imperial #ank o! India with e tensive
banking !acilities on a large
scale especially in rural and semi'urban areas. It !ormed +tate #ank o! India to act
as the principal agent o! 6#I and to handle banking transactions o! the 7nion and
+tate @overnments all over the country.
+even banks !orming subsidiary o! +tate #ank o! India was nationali"ed in 3>;? on
3>th Auly, 3>;>, major process o! nationali"ation was carried out. It was the e!!ort
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o! the then Prime Minister o! India, Mrs. Indira @andhi.38 major commercial banks
in the country were nationali"ed.
+econd phase o! nationali"ation Indian #anking +ector 6e!orm was carried out in
3>=? with seven more banks. This step brought =?N o! the banking segment in
India under @overnment ownership.
The !ollowing are the steps taken by the @overnment o! India to 6egulate
#anking Institutions in the /ountry2'
3>8>2 0nactment o! #anking 6egulation $ct.
3>::2 *ationali"ation o! +tate #ank o! India.
3>:>2 *ationali"ation o! +#I subsidiaries.
3>;32 Insurance cover e tended to deposits.
3>;>2 *ationali"ation o! 38 major banks.
3>=?2 *ationali"ation o! seven banks with deposits over %?? crore.
$!ter the nationali"ation o! banks, the branches o! the public sector bank India
raised to appro imately =??N in deposits and advances took a huge jump by
33,???N.
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INTRODUCTION TO THE ORGANI4ATION
BANKING SYSTEM IN INDIA
The #anking +ystem in India consists o!2
3. 6eserve #ank %. (evelopment #anks
5. Public +ector #ank. 8. oreign #anks :. Private +ector #anks
;. /ooperative #anks58. It was nationali"ed in 3>8=.
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6eserve #ank o! India is the bank that issues and regulates the issue o! currency
in India .The banker to the @overnment o! India and the +tate governments. It
manages the public debt. It has the obligation to transact the banking business o!
the /entral @overnment. It undertakes to accept money on behal! o! the
@overnment and make payment on its behal!. The bankers bank. /ommercial
banks maintain their current account with the 6eserve #ank o! India.
The bank that manages the volume o! credit created by the commercial banks to
ensure price stability.
The bank that manages the e ternal value o! the currency Indian rupee-.
De2e+o/-ent B"n#s !
These were set up to give long term !inance !or the development o! the country.
These are the Industrial inance /orporation o! India and the Industrial
(evelopment #ank o! India, The Industrial 6econstruction #ank o! India and the
*ational #ank !or $griculture and 6ural (evelopment. $ !ormer development
bank, the Industrial /redit and Investment /orporation o! India 4td. by a reverse
merger in %??%,became a normal commercial bank.It is e pected that the other
development banks, having outlived their utility would also be either converted to
commercial banks or merged with commercial banks.
P0$+%, Se,tor B"n#s !
These are banks which the @overnment either owns or has a majority stake in it.
The largest is the +tate #ank o! India which was !ormed by the merger o! the
Presidency #anks K the #ank o! #engal, the #ank o! #ombay and the #ank o!
Madras in 3>%3. It was then known as the Imperial #ank. It was nationali"ed in
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3>:: by the passing o! the +tate #ank o! India $ct, 3>::. It has seven
subsidiaries or associates.
Fore%&n B"n#s !
These are branches o! banks incorporated outside India. In 3>>:1 >;
many other !oreign banks optimistic in view o! Indias liberali"ation- opened
branches in India. However, a!ter banking began to become increasingly
competitive and margins began to be s&uee"ed coupled with large non
per!orming assets, many banks closed their branches
Pr%2"te Se,tor B"n#s !
These are banks which are not government owned or controlled. Their sharesare !reely traded in the +tock Markets.
Coo/er"t%2e B"n#s !
/ooperative #anks are those that are created by a group o! individual to support
either a community or a religious group. They operate in metropolitan, urban and
semi urban centers to cater to the needs o! small borrowers.
Re&%on"+ R0r"+ B"n#s !
These came into being on 9ctober %, 3>
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to bridge the gap in rural credit granting loans and advances to small and marginal
!armers, artisans, small entrepreneur and persons o! small means engaged in
trade, commerce, industry or other productive ,activities within their area o!
operation.
Lo,"+ Are" B"n#s !
4ocal $rea #anks came into e istence in 3>>> and licenses were given !or these
banks as it was !elt that regular commercial banks were not !inancial the rural1
agricultural sector ade&uately. 4icenses were given to open branches in three
districts. #ranches in urban1 semi urban areas were granted only a!ter ten
branches were established in rural areas1 villages.
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INTRODUCTION OF SBI BANK
Se,tors B"n#s
Centr"+ B"n# ! 6eserve #ank o! India
N"t%on"+%5e*
B"n#s !
+tate #ank o! India 6 $llahabad #ank 6 $ndhra #ank 6 #ank o!
#aroda 6 #ank o! India 6 #ank o! Maharashtra 6 /anara #ank ,
/entral #ank o! India , /orporation #ank , (ena #ank , Indian
#ank , Indian 9verseas #ank , 9riental #ank o! /ommerce ,
Punjab +ind #ank , Punjab *ational #ank , +yndicate #ank ,
I(#I #ank, 7nion #ank o! India , 7nited #ank o! India , 7/9
#ank , Oijaya #ank.
,
Pr%2"te B"n#s ! $ is #ank , #ank o! 6ajasthan #harat 9verseas #ank
/atholic +yrian #ank /enturion #ank o! Punjab /ity 7nion
#ank .(evelopment /redit #ank (hanalakshmi #ank ederal
#ank @anesh #ank o! Burundwad H( / #ank I/I/I #ank
IndusInd #ank I*@ Oysya #ank Aammu Bashmir#ank Barnataka #ank 4imited Barur Oysya #ank Botak
Mahindra #ank 4akshmi Oilas #ank *ainital #ank 6atnakar
#ank +#I /ommercial and International #ank +outh Indian
#ank Tamilnad Mercantile #ank 4td. .
Fore%&n
B"n#s !
/itibank H+#/ +tandard /hartered
Re&%on"+
R0r"+ B"n#s !
+outh Malabar @ramin #ank
Coo
/er"t%
2e
B"n#s
!
The $ndaman and *icobar +tate /o'operative #ank 4td. The
$runachal Pradesh +tate co'operative $pe #ank 4td. The
$ssam /o'operative $pe #ank 4td The #ihar +tate /o'
operative #ank 4td. The /handigarh +tate /o'operative #ank4td.
http://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ING_Vysya_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ING_Vysya_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Chartered8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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HISTORY OF SBI BANK !
The evolution o! +tate #ank o! India can be traced back to the !irst decade o! the
3>th century. It began with the establishment o! the #ank o! /alcutta in /alcutta,
on % Aune 3=?;. The bank was redesigned as the #ank o! #engal, three yearslater, on % Aanuary 3=?>. It was the !irst ever joint'stock bank o! the #ritish India,
established under the sponsorship o! the @overnment o! #engal. +ubse&uently,
the #ank o! #ombay established on 3: $pril 3=8?- and the #ank o! Madras
established on 3 Auly 3=85- !ollowed the #ank o! #engal.
$n important turning point in the history o! +tate #ank o! India is the launch o! the
!irst ive Qear Plan o! independent India, in 3>:3. The Plan aimed at serving the
Indian economy in general and the rural sector o! the country, in particular. 7ntil
the Plan, the commercial banks o! the country, including the Imperial #ank o! India,
con!ined their services to the urban sector. Moreover, they were not e&uipped to
respond to the growing needs o! the economic revival taking shape in the rural
areas o! the country. There!ore, in order to serve the economy as a whole and
rural sector in particular.
The $ll India 6ural /redit +urvey /ommittee proposed the take over o! theImperial #ank o! India, and integrating with it, the !ormer state'owned or state'
associate banks. +ubse&uently, an $ct was passed in the Parliament o! India in
May 3>::. $s a result, the +tate #ank o! India +#I- was established on 3 Auly
3>::. This resulted in making the +tate #ank o! India more power!ul, because as
much as a &uarter o! the resources o! the Indian banking system were controlled
directly by the +tate. 4ater on, the +tate #ank o! India +ubsidiary #anks- $ct was
passed in 3>:>.
The +tate #ank o! India emerged as a pacesetter, with its operations carried out by
the 8=? o!!ices comprising branches, sub o!!ices and three 4ocal Head 9!!ices,
inherited !rom the Imperial #ank. Instead o! serving as mere repositories o! the
communityJs savings and lending to creditworthy parties, the +tate #ank o! India
catered to the needs o! the customers, by banking purpose!ully.
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St"te B"n# o' In*%" +#I- 4+0 2+#I( - is the largest bank in India.
The bank traces its ancestry back through the Imperial #ank o! India to the
!ounding in 3=?; o! the #ank o! /alcutta , making it the oldest commercial bank in
the Indian +ubcontinent . The @overnment o! India nationalised the Imperial #ank
o! India in 3>:: , with the 6eserve #ank o! India taking a ;?N stake, and renamed
it the +tate #ank o! India. In %??=, the @overnment took over the stake held by the
6eserve #ank o! India.
+#I provides a range o! banking products through its vast network in India and
overseas, including products aimed at *6Is . )ith an asset base o! R3%; billion and
its reach, it is a regional banking behemoth. +#I has laid emphasis on reducing thehuge manpower through @olden handshake schemes, which led to a !light o! its
best and brightest managers which took to retirement allowances and then went
on the become senior managers at new private sector banks, and computeri"ing
its operations.
The roots o! the +tate #ank o! India rest in the !irst decade o! 3>th century, when
the #ank o! /alcutta , later renamed the #ank o! #engal , was established on %
Aune 3=?; . The #ank o! #engal and two other Presidency banks, namely, the
#ank o! #ombay incorporated on 3: $pril 3=8? - and the #ank o! Madras
incorporated on 3 Auly 3=85 -.. These three banks received the e clusive right to
issue paper currency in 3=;3 with the Paper /urrency $ct, a right they retained
until the !ormation o! the 6eserve #ank o! India . The Presidency banks
amalgamated on %< Aanuary 3>%3, and the reorgani"ed banking entity took as its
name Imperial #ank o! India . The Imperial #ank o! India continued to remain a joint
stock company.
Pursuant to the provisions o! the +tate #ank o! India $ct 3>::-, the 6eserve #ank
o! India , which is IndiaJs central bank , ac&uired a controlling interest in the Imperial
#ank o! India. 9n 5? $pril 3>:: the Imperial #ank o! India became the +tate #ank
o! India.In 3>:> the @overnment passed the +tate #ank o! India +ubsidiary
#anks- $ct, enabling the +tate #ank o! India to take over eight !ormer +tate'
associated banks as its subsidiaries. 9n +ept 35 , %??=, +tate #ank o! +aurashtra ,
one o! its $ssociate #anks, merged with +tate #ank o! India.
http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtra8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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$ssociate !an"s:-
There are si associate banks that !all under +#I, and together these si banks
constitute the +tate #ank @roup. $ll use the same logo o! a blue keyhole and all
the associates use the C+tate #ank o!C name !ollowed by the regionalhead&uartersJ name. 9riginally, the then seven banks that became the associate
banks belonged to princely states until the government nationali"ed them in 3>:>.
In tune with the !irst ive Qear Plan, emphasi"ing the development o! rural India,
the government integrated these banks into +tate #ank o! India to e pand its rural
outreach. There has been a proposal to merge all the associate banks into +#I to
create a Cmega bankC and streamline operations. The !irst step along these lines
occurred in +eptember %??= when +tate #ank o! +aurashtra merged with +tate#ank o! India, which reduced the number o! state banks !rom seven to si .
+tate #ank o! Indore +tate #ank o! #ikaner Aaipur +tate #ank o! Hyderabad +tate #ank o! Mysore +tate #ank o! Patiala +tate #ank o! Travancore
%ro th:-
+tate #ank o! India has o!ten acted as guarantor to the Indian @overnment , most
notably during /handra +hekhar Js tenure as Prime Minister o! India . )ith more
than 33,333 branches and a !urther ;:??S associate bank branches, the +#I has
e tensive coverage. +tate #ank o! India has electronically networked all o! its
branches under /ore #anking +ystem /#+-. The bank has one o! the largest $TM
networks in the region. More than =:?? $TMs across India. The +tate #ank o!
India has had steady growth over its history, though it was marred by the Harshad
Mehta scam in 3>>%. In recent years, the bank has sought to e pand its overseas
operations by buying !oreign banks. It is the only Indian bank to !eature in the top
http://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehta8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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3?? world banks in the ortune @lobal :?? rating and various other rankings.
Group companies:-
+#I /apital Markets 4td +#I Mutual und $ Trust- +#I actors and /ommercial +ervices 4td +#I ( HI 4td +#I /ards and Payment +ervices Pvt 4td +#I 4i!e Insurance /o. 4td ' #ancassurance 4i!e Insurance- +#I unds Management Pvt 4td +#I /anada
Est"$+%s(-ent !
The establishment o! the #ank o! #engal marked the advent o! limited liability,
joint'stock banking in India. +o was the associated innovation in banking, vi". the
decision to allow the #ank o! #engal to issue notes, which would be accepted !or
payment o! public revenues within a restricted geographical area. This right o! note
issue was very valuable not only !or the #ank o! #engal but also its two siblings,
the #anks o! #ombay and Madras. It meant an accretion to the capital o! the
banks, a capital on which the proprietors did not have to pay any interest.
The concept o! deposit banking was also an innovation because the
practice o! accepting money !or sa!ekeeping and in some cases, even investment
on behal! o! the clients- by the indigenous bankers had not spread as a general
habit in most parts o! India. #ut, !or a long time, and especially upto the time thatthe three presidency banks had a right o! note issue, bank notes and government
balances made up the bulk o! the investible resources o! the banks.
The three banks were governed by royal charters, which were revised !rom time to
time. 0ach charter provided !or a share capital, !our'!i!th o! which were privately
subscribed and the rest owned by the provincial government. The members o! the
board o! directors, which managed the a!!airs o! each bank, were mostly
proprietary directors representing the large 0uropean managing agency houses in
http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=18/13/2019 47675185 Comparative Analysis of SBI HDFC Bank
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India. The rest were government nominees, invariably civil servants, one o! whom
was elected as the president o! the board.
B0s%ness 2'
The business o! the banks was initially con!ined to discounting o! bills o! e change
or other negotiable private securities, keeping cash accounts and receiving
deposits and issuing and circulating cash notes. 4oans were restricted to 6s.one
lakh and the period o! accommodation con!ined to three months only. The security
!or such loans was public securities, commonly called /ompanyJs Paper, bullion,
treasure, plate, jewels, or goods Jnot o! a perishable natureJ and no interest could
be charged beyond a rate o! twelve per cent. 4oans against goods like opium,
indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were
also granted but such !inance by way o! cash credits gained momentum only !rom
the third decade o! the nineteenth century. $ll commodities, including tea, sugar
and jute, which began to be !inanced later, were either pledged or hypothecated to
the bank.
M"7or ,("n&e %n t(e ,on*%t%ons !
$ major change in the conditions o! operation o! the #anks o! #engal, #ombay
and Madras occurred a!ter 3=;?. )ith the passing o! the Paper /urrency $ct o!
3=;3, the right o! note issue o! the presidency banks was abolished and the
@overnment o! India assumed !rom 3 March 3=;% the sole power o! issuing paper
currency within #ritish India. The task o! management and circulation o! the newcurrency notes was con!erred on the presidency banks and the @overnment
undertook to trans!er the Treasury balances to the banks at places where the
banks would open branches. *one o! the three banks had till then any branches
e cept the sole attempt and that too a short'lived one by the #ank o! #engal at
Mir"apore in 3=5>- although the charters had given them such authority. #ut as
soon as the three presidency bands were assured o! the !ree use o! government
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Pres%*en,1 B"n#s A,t !
The presidency #anks $ct, which came into operation on 3 May 3=
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country. *ew irrigation networks in Madras, Punjab and +ind accelerated the
process o! conversion o! subsistence crops into cash crops, a portion o! which
!ound its way into the !oreign markets. Tea and co!!ee plantations trans!ormed
large areas o! the eastern Terais, the hills o! $ssam and the *ilgiris into regions o!
estate agriculture par e cellence. $ll these resulted in the e pansion o! IndiaJs
international trade more than si '!old.
The three presidency banks were both bene!iciaries and promoters o! this
commerciali"ation process as they became involved in the !inancing o! practically
every trading, manu!acturing and mining activity in the sub'continent.
)hile the #anks o! #engal and #ombay were engaged in the !inancing o! large
modern manu!acturing industries, the #ank o! Madras went into the !inancing o!
large modern manu!acturing
industries, the #ank o! Madras went into the !inancing o! small'scale industries in a
way which had no parallel elsewhere. #ut the three banks were rigorously
e cluded !rom any business involving !oreign e change. *ot only was such
business considered risky !or these banks, which held government deposits, it was
also !eared that these banks enjoying government patronage would o!!er un!air
competition to the e change banks which had by then arrived in India. This
e clusion continued till the creation o! the 6eserve #ank o! India in 3>5:.
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Pres%*en,1 B"n#s o' Ben&"+ 2'
The presidency #anks o! #engal, #ombay and Madras with their
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The establishment o! the 6eserve #ank simultaneously saw important
amendments being made to the constitution o! the Imperial #ank converting it into
a purely commercial bank.
Imperial #ank2'
The Imperial #ank during the three and a hal! decades o! its e istence recorded
an impressive growth in terms o! o!!ices, reserves, deposits, investments and
advances, the increases in some cases amounting to more than si '!old.
The !inancial status and security inherited !rom its !orerunners no doubt provided a
!irm and durable plat!orm. #ut the lo!ty traditions o! banking which the Imperial
#ank consistently maintained and the high standard o! integrity it observed in its
operations inspired con!idence in its depositors that no other bank in India could
perhaps then e&ual. $ll these enabled the Imperial #ank to ac&uire a pre'eminent
position in the Indian banking industry and also secure a vital place in the countryJs
economic li!e.
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St"-/ o' I-/er%"+ B"n# o' In*%"
S0$s%*%"r%es2 ' The +tate #ank @roup includes a network o! eight banking subsidiaries and
several non'banking subsidiaries. Through the establishments, it o!!ers various
services including merchant banking services, !und management, !actoring
services, primary dealership in government securities, credit cards.
T(e e%&(t $"n#%n& s0$s%*%"r%es "re
33. +tate #ank o! #ikaner and Aaipur +##A-
3%. +tate #ank o! Hyderabad +#H-
35. +tate #ank o! India +#I-
38. +tate #ank o! Indore +#I6-3:. +tate #ank o! Mysore +#M-
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3;. +tate #ank o! Patiala +#P-
3
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/orporate #anking Internet #anking Mobile #anking International #anking +a!e (eposit 4ocker 6#I0 T 0'Pay 0'6ail +#I Oishwa Qatra oreign Travel /ard #roking +ervices @i!t /he&ues
NET8ORK OF SBI BANK !
+#I #ank India has :% oreign 9!!ices in 58 countries. +#I India serves the
international needs o! its !oreign customers, in addition to conducting retail
operations. The !ocus o! the o!!ices o! +#I is India'related business. ew o! the
countries where +#I #ank has branches are as under2
$ustralia #ahamas #ahrain
#angladesh #elgium #hutan /anada rance @ermany Hong Bong Aapan Maldives
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Mauritious Muscat *epal *igeria 9man 6ussia +ingapore +ri 4anka +outh $!rica 7B 7+$
Str0,t0re o' Or&"n%5"t%on !
Centr"+ Bo"r* o' St"te B"n# o' In*%"
9 $s on 35 th Aanuary %??>-
BOARD OF DIRECTORS
Sr. No. N"-e o' D%re,tor Se,. o' SBI A,t6
:; a-
%. +hri +.B. #hattacharyya
M( // 69
3> b-
5. +hri 6. +ridharan
M( @0 $ +- 3> b-
8. (r. $shok Ahunjhunwala 3> c- :. +hri (ileep /. /hoksi 3> c- ;. +hri +. Oenkatachalam 3> c- c- =. (r. (eva *and #alodhi 3> d- >. Pro!. Mohd. +alahuddin $nsari 3> d-
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3?. (r. Mrs.- Oasantha #harucha 3> d- 33. (r. 6ajiv Bumar 3> d- 3%. +hri $run 6amanathan 3> e-
35. +mt. +hyamala @opinath
3> !-
PERFORMANCE OF SBI BANK
INVESTOR RELATIONS !
St"te B"n# o' In*%" , the countrys largest commercial #ank in terms o! pro!its,
assets, deposits, branches and employees, welcomes you to its DInvestors
6elations +ection. +#I, with its heritage dating back to the year 3=?;, strives to
continuously provide latest and upto date in!ormation on its !inancial per!ormance.
It is our endeavor to walk on the path o! transparency and allow complete access
to all the stakeholders enabling total awareness about the #ank. The #ank
communicates with the stakeholders through a variety o! channels, such as
through e'mail, website, con!erence call, one'on'one meeting, analysts meet and
attendance at Investor /on!erence throughout the world.
Please !ind below #anks !inancial results, analysis o! per!ormance and other
highlights which will be o! interest to Investors, und Managers and $nalysts. +#I
has always been !undamentally strong in its core business which is mirrored
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SBI FINANCIAL HIGHLIGHTS !
PAST < YEARSTABLE I
STATE BANK OF INDIA !FINANCIAL HIGHLIGHTS =>>=!>?
Rs. %n B%++%on FY=>>= FY=>>@ FY=>> FY=>>< FY =>>FY=>>?
De/os%ts =?>. @ >>. @
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E /enses
O/er"t%n& Pro'%t >. ??.? ;>.>>
Tot"+ Pro2%s%ons @ .: .?> < .?= . .;@ < .
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St"'' E /enses :.> :.=> :. ? :.< :. = :. =
O2er(e"* E /enses >. = >. ? >. >.?= >. : >.;>
Tot"+ O/er"t%n& E /enses :. :. ? =.:: =.@> =. @ =.?=
O/er"t%n& Pro'%t :.= :. =.:; =. . < .:
C"/%t"+ A*e30",1 R"t%o:@.@< :@. :@. ?.:: .>=
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Borro)%n&s :.;: :.; @.>? .@; . ? ;.:@
Ot(er L%"$%+%t%es Pro2%s%ons
:>. ::.=: :=.?> ::.@@ :=. :@. :
Tot"+ ASSETS ?:.@< ?;.: ;@.= :>.?@ :@>.@@
C"s( $"+"n,es )%t(Reser2e B"n# o' In*%" . =. .@< @. . < . ;
B"+"n,es )%t( $"n#s "n*-one1 "t ,"++ s(ortnot%,e
. = . @ .?@ :@>.@@
Cont%n&ent L%"$%+%t%es =>.;< ==.@ =
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M"r#et Pr%,e 9Rs9"s on +"st *"1 o' t(e 1e"r 30"rter
=?> >
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Person"+ Lo"n "&"%nst T(%r* P"rt1 Se,0r%t1 o' NSC IVP RBI Re+%e' Bon*s
et,. !
Ten0re R"te o' Interest
7p to 5 years 3.??N above +#$6 i.e. 35.%:N
p.a.
$bove 5 years upto ; years
?.%:N above +#$6 i.e. 3%.:?N
p.a.
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9FA PERSONAL LOAN
. )hat are my loan limitsU
A. Qour personal loan limit would be determined by your income and repayment
capacity. *ormally you can avail a loan upto 6s.%.:? lacs. However, i! in metros o!
*ew(elhi, Mumbai, #angalore, /hennai, Hyderabad and Bolkata, salaried
individuals or sel!'employed pro!essionals can avail Personal 4oan upto 6s.:.??
lacs. I! the salary o! a salaried individual is credited to his1her account with our
#ank or a sel!'employed pro!essional has been maintaining a satis!actorily
conducted account with us, a Personal 4oan o! up to 6s.3? lacs can be
sanctioned.
. /an my spouses income be included !or calculating the loan amountU
A. Qes, your spouseJs income can be included provided he1she guarantees the
loan or the loan is taken jointly.
. )hat are the important documents that I need to provideU
A. Qou will need to !urnish only the !ollowing documents i! you are an e isting
customer o! the #ank2
' Passport si"e photograph
' Proo! o! o!!icial address !or sel! employed individuals and pro!essionals. This can
include shop and establishment certi!icate14ease deed1Telephone #ill
' 4atest +alary clip and orm 3;, in the case o! salaried persons
. (o I have to pledge some !orm o! securityU
A. *o security is re&uired.
. )hat is the repayment schedule likeU
A. The minimum amount that you are e pected to pay every month is the 0MI. Qou
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are allowed to pay more than the 0MI i! you wish to, and we do not charge any
prepayment penalty.
. )hat is 0MIU
A. 0MI stands !or 0&uated Monthly Installments. This installment comprises both
principal and interest components. 7se the 0MI calculator to !ind out your monthly
payments based on the loan amount, the rate o! interest and the repayment
period. /hoose the combination that best meets your !inancial resources and
re&uirements.
. /an I prepay the loanU $re there any penaltiesU
A. Qes, you can prepay the loan partly or !ully, at any stage, without anyprepayment penalty.
. )hat is the processing !eeU $re there any other chargesU
A. Processing charges are 3 per cent o! the loan amount. This is amongst the
lowest !ees in the industry. Processing !ees have to be paid up!ront. There are no
hidden costs or other administrative charges.
. (o I have the option o! choosing a !i ed or !loating rate !or the loanU A. Qou have the option to avail the loan with either a !i ed interest rate or a !loating
one. In the case o! a !i ed rate loan, the interest rate on the loan will remain !i ed
through the entire tenure o! the loan, whereas in the case o! a !loating rate loan,
the interest rate could decline or rise in line with the changes in the #ankJs Medium
Term 4ending 6ate +#MT46-.
. How does +#I Personal loan compare with those o!!ered by other banksU
A. There is total transparency with regard to the rate o! interest and the !ees
charged by us.
' )e o!!er personal loans at the cheapest rates o! interest, with no security or
collateral
' )e o!!er loans !or the longest tenors 8= months-, with the !le ibility provided to
reduce the tenor by prepaying the loan without any penalty.
' )e provide !inance !or any personal need or re&uirement, the total amount being
determined on the basis o! repaying capacity.
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' )ith an +#I personal loan you can choose between !i ed rates o! interest and
!loating interest rates.
INTRODUCTION OF HDFC BANK
B",#&ro0n*
H( / was incorporated in 3>
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e- To grow through diversi!ication by leveraging o!! the 0 isting client.
HISTORY OF HDFC BANK
The Housing (evelopment inance /orporation 4imited H( /- was amongst the
!irst to receive an Jin principleJ approval !rom the 6eserve #ank o! India 6#I- to set
up a bank in the private sector, as part o! the 6#IJs liberali"ation o! the Indian
#anking Industry in 3>>8. The bank was incorporated in $ugust 3>>8 in the name
o! JH( / #ank 4imitedJ, with its registered o!!ice in Mumbai, India. H( / #ank
commenced operations $s a +cheduled /ommercial #ank on 3;th Aanuary 3>>:.
In the year 3>>= H( / #ank had tied up with the $hmadabad +tock 0 change
$+0- to act as its clearing bank
B0s%ness Fo,0s !
H( / #ankJs mission is to be a )orld'/lass Indian #ank. The objective is to build
sound customer !ranchises across distinct businesses so as to be the pre!erred
provider o! banking services !or target retail and wholesale customer segments,
and to achieve healthy growth in pro!itability, consistent with the bankJs riskappetite. The bank is committed to maintain the highest level o! ethical standards,
pro!essional integrity, corporate governance and regulatory compliance.
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S0$s%*%"r1 "n* Asso,%"te Co-/"n%es
T(e s0$s%*%"r%es o' HDFC ,ons%sts o'
3. H( / #ank
%. H( / Mutual und
5. H( / +tandard 4i!e Insurance /ompany
8. H( / 6ealty
:. H( / /hubb @eneral Insurance /ompany 4imited.
;. Intel net @lobal +ervices 4imited
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HDFC BANK
T(e Or&"n%5"t%on !
The Housing (evelopment inance /orporation 4imited H( /- was amongst the
!irst to receive an Jin principleJ approval !rom the 6eserve #ank o! India 6#I- to set
up a bank in the private sector, as part o! the 6#IJs liberalisation o! the Indian
#anking Industry in 3>>8. The bank was incorporated in $ugust 3>>8 in the name
o! JH( / #ank 4imitedJ, with its registered o!!ice in Mumbai, India. H( / #ank
commenced operations $s a +cheduled /ommercial #ank on 3;th Aanuary 3>>:.
In the year 3>>= H( / #ank had tied up with the $hmadabad +tock 0 change
$+0- to act as its clearing bank.
C"/%t"+ Str0,t0re !
The authori"ed capital o! H( / #ank is 6s.8:? crore 6s.8.: billion-. The paid'up
capital is 6s.533.> crore 6s.5.3 billion-. The H( / @roup holds %%.3N o! the
bankJs e&uity and about 3>.8N o! the e&uity is held by the $(+ (epository in
respect o! the bankJs $merican (epository +hares $(+- Issue-. 6oughly 53.5N o!
the e&uity is held by oreign Institutional Investors IIs- and the bank has about
3>?,??? shareholders. The shares are listed on the The +tock 0 change, Mumbai
and the *ational +tock 0 change.
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T%-es B"n# A-"+&"-"t%on !
In a milestone transaction in the Indian banking industry, Times #ank 4imited
another new private sector bank promoted by #ennett, /oleman /o.1Times
@roup- was merged with H( / #ank 4td., e!!ective ebruary %;, %???. $s per the
scheme o! amalgamation approved by the shareholders o! both banks and the
6eserve #ank o! India, shareholders o! Times #ank received 3 share o! H( /
#ank !or every :.
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ORGANI4ATIONAL STRUCTURE OF HDFC BANK !
Bo"r* o' D%re,tors !
3. Mr.Aagdish Bapoor
%. $ditya Puri
5. 6anu Bamad
8. Oineet Aain
:. $rvind Pande
;. @autam (ivan
>8 was heading /itibankJs
operations in Malaysia.
The #ankJs #oard o! (irectors is composed o! eminent individuals with a wealth o!
e perience in public policy, administration, industry and commercial banking.
+enior e ecutives representing H( / are also on the #oard.
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The management consists o! the /hairman Mr Aagdish kapoor and > other
(irectors that assist him in achieving objectives o! the bank.
M6. Aagdish Bapoor
Mr. Aagdish Bapoor holds a Masters degree in /ommerce and is a ellow
member o! Indian Institute o! #anking and inance. Prior to joining the #ank, Mr.
Bapoor was the (eputy @overnor o! the 6eserve #ank o! India. He retired as(eputy @overnor o! 6eserve #ank o! India a!ter serving !or 5> years. )hile with
6eserve #ank o! India, Mr. Bapoor was the /hairman o! the (eposit Insurance
and /redit @uarantee /orporation o! India and #haratiya 6eserve #ank *ote
Mudran 4imited. He also served on the boards o! 0 port Import #ank o! India,
*ational Housing #ank, *ational #ank !or $griculture and 6ural (evelopment
*$#$6(- and +tate #ank o! I*(I$.
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Mr. Aain is Managing (irector o! #ennett, /oleman /o. 4imited and (irector in
Times In!otainment Media 4imited, 0ntertainment *etwork India- 4imited, 9ptimal
Media +olutions 4imited, The Press Trust o! India 4imited, Times Internet 4imited,
Times @lobal #roadcasting /ompany 4imited, #harat *idhi 4imited, Times Aournal
India Private 4imited, )orldwide Media Private 4imited,.
Mrs. 6enu Barnad
Mrs. Barnad is a Aoint Managing (irector o! Housing (evelopment inance
/orporation 4imited and /hairperson o! H( / Oenture /apital 4imited, H( /
Property Oentures 4imited and Home 4oan +ervices India Private 4imited. +he is a
(irector o! H( / $sset Management /ompany 4imited, @67H inance 4imited,H( / 6ealty 4imited, /redit In!ormation #ureau India- 4imited, H( / @eneral
Insurance /ompany 4imited, I/I India 4imited, Indraprastha Medical /orporation
4imited, H( / +tandard 4i!e Insurance /ompany 4imited, +parsh #P9 +ervices
4imited, Mother (airy ruits Oegetables Private 4imited, eedback Oentures
Private 4imited, Motor Industries /o. 4imited, 0gyptian Housing inance /ompany
and $scendas Pte. 4imited, +ingapore.
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Mr. $rvind Pande
He was a Aoint +ecretary to the Prime Minister o! India !or 0conomics, +cience
and Technology issues. Mr. Pande has served as a (irector, (epartment o!
0conomic $!!airs, Ministry o! inance, @overnment o! India and has dealt with
)orld #ank aided projects. Mr. Pande has also served on the #oard o! +teel
$uthority o! India 4imited as its /hairman and /hie! 0 ecutive 9!!icer /09-.
Mr. $shim +amanta
He has vast e perience in the !ield o! bulk drugs and pharmaceutical !ormulations.
He is a (irector o! +amanta 9rganics Private 4imited, *autilus Trading 4easing
Private 4imited, $shish 6ang 7dyog Private 4imited, +amanta Movies Private
4imited and +hakti /ine +tudios Private 4imited. Mr. +amanta has also been
engaged in setting up and running o! !ilm editing and dubbing studio.
Mr. @autam (ivan
Mr. (ivan is on the #oard o! H( / +tandard 4i!e Insurance /ompany 4imited,
#altic /onsultancy +ervices Private 4imited, #ell /eramics 4imited, #rady
Morris 0ngineering /ompany 4imited, /handanbhoy and Aassoobhoy /onsultants
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Private 4imited, +erendib Investments Private 4imited and $scent Hotels Private
4imited.
(r. Pandit Palande
(r. Palande has e tensive e perience o! working in the !ields o! business
administration, management and agriculture. 7nder the guidance o! (r. Palande,
Q/M97 has become one o! the green universities in India. $s a project (irector o!
Indian +pace 6esearch 9rganisation I+69- @$P'5 o! Q/M97, (r. Palande has
been serving the agriculture community on a large scale through satellite.
Pro*0,ts "n* Ser2%,es HDFC B"n#
Pro*0,t r"n&e 2
The !ollowing is the product range o!!ered at H( /2 )hile various deposit products
o!!ered by the bank are assigned di!!erent names, the deposit products can be
categori"ed broadly into the !ollowing types. (e!inition o! major deposit schemes
are as under2 '
:. De-"n* *e/os%ts
C(emand (epositsC means a deposit received by the bank which is withdrawn
able on demandG
a- +avings $ccount2
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C+avings (epositsC means a !orm o! (emand (eposit which is subject to
restrictions as to the number o! withdrawals as also the amounts o! withdrawals
permitted by the bank during any speci!ied periodG H( / provides with saving
bank account with the usual !acilities, and one also gets a !ree $TM card,
intrbranch banking, bill payment !acilities, phone banking and mobile banking.
=. Ter- De/os%ts
CTerm (epositC means a deposit received by the bank !or a !i ed period withdraw
able only a!ter the e piry o! the !i ed period and includes deposits such as
6ecurring 1 (ouble #ene!it (eposits .
@. Not%,e De/os%t
JJ*otice (epositJJ means Term (eposit !or a speci!ic period but which can be
withdrawn on giving at least one complete banking dayJs notice.
. C0rrent A,,o0nt
C/urrent $ccountC means a !orm o! (emand (eposit where!rom withdrawals are
allowed any number o! times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are
neither +avings (eposit nor Term (epositG The account holder gets a personali"ed
che&ue book, monthly account statements, and Inter'branch banking.
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These are more commonly known as +alary $ccounts. These are account in
H( / bank with "ero balance. These are given to salaried people. These
accounts are opened by the employer !or the employees to deposit the salary o!
the employee directly to the account.
. HDFC B"n# Pre'erre* !
$ pre!erential +avings $ccount where in, one is assigned with a dedicated
6elationship Manager, whos youre the one point contact. 9ne also get privileges
like !ee waivers, enhanced $TM withdrawal limit, priority locker allotment, !ree
(emat $ccount and lower interest rates on loans.
?. S)ee/!In A,,o0nt !
$ i ed (eposit linked to ones +avings $ccount. +o, even i! ones +avings
$ccount runs a bit short, one can issue a che&ue or use $TM /ard-.
. S0/er S"2er A,,o0nt !
It gives one an overdra!t !acility up to
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=>>;
$sian #anker0 cellence in6etail inancial+ervices
As%"n B"n#er Best Ret"%+ B"n# %n In*%" A)"r* =>>;
=>>
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inance $sia/ountry $wards!or $chievement%??=
Best B"n# "n* Best C"s( M"n"&e-ent B"n#
/**'I#* In*%"n o' t(e Ye"r 9B0s%ness
*asscom IT 7ser $ward %??=
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orbes $sia F"$ ,o-/"n%es %n As%" P",%'%,
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Best Ret"%+ B"n# =>>
$siamoney Best +o,"+ C"s( M"n"&e-ent B"n# A)"r* 2ote* $1Cor/or"tes
Microso!t Indian0 press @roup
Se,0r%t1 Str"te&%st A)"r* =>>
)orld Trade/enter $ward o!honour
For o0tst"n*%n& ,ontr%$0t%on to %ntern"t%on"+ tr"*eser2%,es.
#usiness Today'Monitor @roupsurvey
One o' In*%" s Most Inno2"t%2e Co-/"n%es
inancial0 press'0rnst Qoung $ward
Best B"n# A)"r* %n t(e Pr%2"te Se,tor ,"te&or1
@lobal H60 cellence
$wards ' $siaPaci!ic H6M/ongress2
E-/+o1er Br"n* o' t(e Ye"r =>>? !=>> A)"r* ! F%rst R0nner 0/6 -"n1 -ore
=>>?
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(un #radstreet K $merican0 press/orporate #est#ank $ward %??
$ Fr%en* =?N o! customers agree that +#I bank is very good good.
because o! good image, public sector bank, low interest rate. /ompression to H( /
bank more customers agree that +#I bank is very good.
.; O2er "++ /re'eren,e on t(e $"s%s o' %nterest r"te6 %-"&e "n* s,(e-e.
9
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" HDFC @ in %??=
orbes @lobal %???. )ith an asset base o! R3%; billion and its reach, it is a
regional banking behemoth.)ide (istribution *etwork2
0 cellent penetration in the country with more than 3???? core branches and
more than :3?? branches o! associate banks subsidiaries-.
D%2ers%'%e* Port'o+%o
+#I #ank has all the products under its belt, which help it to e tend the
relationship with e isting customers #ank has umbrella o! products to o!!er
their customers, i! once customer has relationship with the bank. +ome
Products, which +#I #ank is o!!ering are2 6etail #anking #usiness #anking
Merchant 0stablishment +ervices 0(/ Machine- Personal loans /ar loans
Insurance Housing 4oans
Go2ern-ent O)ne* 2'
@overnment owns ;?N stake in +#I. This gives +#I an edge over private
banks in terms o! customer security.
4ow Transition /osts'+#I o!!ers very low transition costs which attracts small
customers.
8e"#nesses !
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3. The e isting hierarchical management structure o! the bank, although
strength in some respects, is a barrier to change.
%. Though +#I cards are the %nd largest player in the credit card industry, it
has the highest non per!orming assets *P$s- in the industry, which stand outto be at 3;.%= N (ec %??
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3. $dvent o! M*/ banks2 4arge numbers o! M*/ banks are mushrooming in
the Indian market due to the !riendly policies adopted by the government. This
can increase the level o! competition and prove a potential threat !or the market
share o! +#I bank.
% /onsumer e pectations have increased many !olds in last !ew years and
the bank has not been responsive enough to meet them on time.
5 Private banks have started venturing into the rural and semi'urban sector,
which used to be the bastion o! the +tate #ank and other P+7 banks
8. 0mployee +trike2 There was an employee strike in the year %??; which
disrupted +#Is activities. This can be repeated in the !uture.
S8OT ANALYSIS OF SBI BANK
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STRENGTH
#6$*( *$M0
M$6B0T 40$(06
@9O06*M0*T 9)*0(.
(IO06+I I0( P96T 94I9
8EAKNESSES
40++ M9(06*I+$TI9*
HI@H06 *P$
/7+T9M06 H$O0 *9T 744
I* 96M$TI9* $#97T @0TTI*@
$/I4ITI0+
OPPURTUNITIES
HI@H $PP69/H 9 $TM
%??? #6$*/H0+ /9MI*@ 9*
O$6I97+ 49/$TI9*
M06@0( )ITH $++9/IT0(
#$*B
THREAT
0MP49Q00 +T6IB0
9TH06 *$TI9*$4IW0( #$*B
$*( P6IO$T0 #$*B+
$(O0*T 9 M*/ #$*B
S8OT ANALYSIS OF HDFC BANK
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pre!erred because its a government bank. Procedure o! loan !inancing is easy
in H( / #ank. amily members increasing standard o! living plays an
important role in in!luencing the decision o! taking home loan.
3. +#I #ank is 4eading #ank in the country, it provides a variety o! products and
services to di!!erent segments o! customers.
%. The #ank aims to serve customers !rom teenagers to senior citi"ens, hence
di!!erent products designed to suit speci!ic re&uirements o! the above.
5. $ims to serve all classes o! the society !rom the salaried middle class to the high
income business class. /ustomers are categori"ed and segmented according to their
re&uirements and needs.
or 0 ample , the +aving 6egular and Plus $ccount aims to serve middle class
customers so minimum balance re&uired to be maintained is 6+.:,???1' or 6+. 3????.
)hile the +aving Ma $ccount is targeted at high income customers, the minimum
balance re&uirement is 6+.%:,???.
8. +#I #ank provides personal loan at low interest rate which good !or customers.
:. The #ank prides itsel! with the ability to provide di!!erentiate products in the crowed
market o! saving accounts. #ank o!!ers !ree insurance, special co'branded debit cards
which makes its product uni&ue.
APPENDIX
Person"+ Det"%+s 2
*ame2 ' YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
$ddress2 '
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
98
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YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
YYYY
$ge2 ' YYYYYYYYYYYYYYYYYY contact no2 ' YYYYYYYYYYYYYYYYYY
9: Pro'%+e o' res/on*ent
a- #usinessman b- +el! employed
c- )orking pro!essional d- @overnment +ervice 0mployee
9= 8(%,( $"n# )o0+* 1o0 /re'er 'or /erson"+ +o"n
a- H( / #ank
b- +#I #ank
c- 9thers
9@ 8("t -"#e 1o0 $e+%e2e to t"#e t(e /erson"+ +o"n 'ro- "n1 /"rt%,0+"r $"n#
a- $dvertisement b- !riend
c- amily member d- others
9 8("t )%++ 1o0 ,ons%*er )(%+e t"#%n& +o"n
a- Interest rate b- scheme
c- (uration d- others
9< For )("t t%-e %nter2"+ 1o0 ("2e t"#en +o"n
$- 3'% years b- %'5 years
c- 5'8 years d- more than 8 years
99
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9 .Do 1o0 '0++1 ,ons%*er t(e /o+%,%es o' t(e $"n# re&"r*%n& /erson"+ +o"n )(en
t"#%n& +o"n.
a- Qes b- no
9? .R"te t(e (*', $"n# "-on& 'o++o)%n& on t(e $"s%s o' $"n# s,(e-e "n*
ser2%,es
a- @ood b- very good c- average d- below average
.R"te t(e s$% $"n# "-on& 'o++o)%n& on t(e $"s%s o' $"n# s,(e-e "n*
ser2%,es
a- @ood b- very good c- average d- belowaverage
9; .Ho) )%++ 1o0 see t(e 'or-"+%t%es o' t(e $"n# )(%+e t"#%n& t(e /erson"+ +o"n
Co--ent
:> On t(e $"s%s o' %nterest r"te6 ser2%,es6 %-"&e6 s,(e-e. 8(%,( $"n# 1o0
/re'er HDFC SBI "n* )(1
BIBLIOGRAPHY
MAGA4INES
1
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#usiness world
#usiness today
NE8SPAPER 0conomic times
Times o! India
The Hindu
8EBSITES
www.hd!cbank.com
www.sbibank.com
www.google.com
KNO8LEDGE THROUGH T.V. !
)atched $ds o! #oth the #anks, they helped us in Bnowing about the banks raised
our interest in the topic. This $ds were the !irst source o! in!ormation about the banks.
They helped in choosing the topic.
TELEVISION
*(TO P69 IT
http://www.sbibank.com/http://www.sbibank.com/